⚖️New Regulations for Defense Consulting Services and Foreign Entities
Defense Federal Acquisition Regulation Supplement: Preventing Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-D007)
Summary
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2024, which prohibits contracting officers from awarding contracts assigned certain North American Industry Classification System codes to offerors holding contracts that involve consulting services with certain covered foreign entities.
Agencies
- Defense Department
- Defense Acquisition Regulations System
Business Impact
$$$ - High
The regulation mandates that contracting officers cannot award contracts related to specified consulting services to candidates with ties to covered foreign entities, imposing compliance requirements on businesses. This affects firms holding contracts with foreign entities and mandates conflict-of-interest mitigation plans for eligibility, leading to increased operational scrutiny and compliance costs.